* View the tutorial, then complete the worksheet, replacing the question marks below with formulas. Required: Based on the information below prepare the journal entries to record 1) the issuance of the common stock and 2) the purchase and subsequent sale of the treasury stock. Answers: Given Information* January 1 Number of common shares issued Par value per share Issue price per share 134,000 $0.01 $16.00 (a) Issuance of common stock January 1 Cash Common Stock Additional Paid-in Capital 2,144,000 1,340 2,142,660 March 18 Number of shares purchased Purchase price per share 1,000 $44.00 (b) Purchase of treasury stock March 18 Treasury Stock Cash 44,000 November 11 % of shares resold Resale price per share 44,000 20% $48.00 (c) Sale of treasury stock November 11 Cash 9,600 Treasury Stock Additional Paid-in Capital 8,800 800 Journal entry worksheet Record the issuance of common shares at an issue price of $16 per share. Note: Enter debits before credits. General Journal Debit Credit Date January 01 Record entry Clear entry View general journal Journal entry worksheet Record the purchase of treasury shares for a purchase price of $44 per share. Note: Enter debits before credits. Date General Journal Debit Credit March 18 Record entry Clear entry View general journal Journal entry worksheet Record the resale of treasury shares at a resale price of $48 per share. Note: Enter debits before credits. Date General Journal Debit Credit November 11 Record entry Clear entry View general journal 2. Which of the following statements regarding treasury stock is false? O Treasury stock is the purchase of a company's own issued stock. The Treasury Stock account is a contra equity account reported in the balance sheet. Treasury stock is recorded at the cost of the shares acquired. Upon the resale of treasury stock, the difference between its cost and the cash received is reported as a gain or loss on the Income statement. 3. Which of the following statements regarding common stock is false? When a company issues common stock there is an Increase in assets and an increase in stockholders' equity. O A company credits Additional Pald-in Capital for the portion of the cash proceeds above par value received for the issuance of stock O A company credits Common Stock for its par value at the time of issuance. The Additional Pald-in Capital account is a revenue account reported in the income statement